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Cost as a Factor in SupplyIn a purely competitive market, the supplier of goods and services has no control over the market price, because he produces too little to influence market conditions. With no difference between his products and the products (51) his competitors, he will sell nothing if he charges above the market price and he will sell all if he charges at or (52) the market price. However, in considering the price, he must take the (53) of production into consideration. There are times when he may be willing to sell below his cost. This might happen when prices tumble for (54) he believes will be a short time. However, no business person can (55) to lose money for a prolonged period. He must be constantly (56) of his costs in relation to the market price if he is to compete successfully and earn a profit.Many people have the impression that as production increases, costs per unit decrease. (57) mass production has made this true in certain industries and at certain levels of production, (58) logic and practical experiences have shown that costs per unit begin to rise beyond a certain level of production. Some economists (59) to this principle as the law of increasing costs.The reason costs rise as production goes up is (60) . However, it is easy to recognize that as production goes up, the need for additional factors of production will also grow, (61) competitive bidding in the marketplace for the factors of production. If a producer needs (62) skilled labor to produce more, and none of this labor is unemployed, the producer will have to get (63) from other sources. This can be done by (64) higher wages. Higher bidding would also apply to the other factors of production. We must also recognize that not all labor is equally productive, (65) not all land is equally fertile and not all ore (矿石) is equally rich in the mineral wanted. 56().
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"What does the middleman do but add to the price of goods in the shops" Such remarks are aimed at the intermediate operations between manufacturers and final customers. This practice usually attracts a lot of attention from the public and the press and the operation most talked about is what is often called wholesaling. The wholesaler buys goods in large quantities from the manufacturers and sells them in smaller parcels to retailers, and for this service his selling price to the retailer is raised several percent higher. But his job is made more difficult by retail demand not necessarily running level with manufacturers’ production. Because he adjusts or regulates the flow of goods by holding stock Until required, he frees the manufacturer, to some extent, from the effect on production of changing demand and having to bear the whole risk. The manufacturer can then keep up a steady production flow, and the retailer has no need to hold heavy stocks, who can call on the wholesaler for supplies any time. This wholesale function is like that of a valve in a water pipe. The middleman also bears part of the risk that would otherwise fall on the manufacturer and also the retailer. The wholesaler provides a purely commercial service, for which he is too well rewarded. But the point that is missed by many people is that the wholesaler is not just someone adding to the cost of goods. It is true one could eliminate the wholesaler but one would still be left with his function: that of making sure that goods find their way to the people who want them. The middleman relieves the producer of ______.
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The Cold Places The Arctic is a polar region. It surrounds the North Pole. Like Antarctica, the Arctic is a land of ice and snow. Antarctica holds the record for a low temperature reading—125 Fahrenheit below zero. Readings of 85 degrees below zero are common in both the Arctic and Antarctica. Winter temperatures average 30 degrees below zero in the Arctic. At the South Pole the winter is about 73 degrees below zero. One thing alone makes it almost impossible for men to Jive in Antarctica and in parts of the Arctic. This one thing is the low temperature—the killing chili of the far North and the polar South. To survive, men must wear the warmest possible clothing. They must build windproof shelters. They must keep heaters going at all times. Not even for moment can they be unprotected against the below-zero temperature. Men have a way of providing for themselves. Polar explorers wrap themselves in warm coats and furs. The cold makes life difficult. But the explorers can stay alive. What about animals Can they survive Do we find plants Do we find life in the Arctic and the Antarctica Yes, we do. There is life in the oceans. There is life on land. Antarctica, as we have seen, is a cold place indeed. But this has not always been the case. Expedition scientists have discovered that Antarctica may have been much like our own. Explores have discovered coal in Antarctica. This leads them to believe that Antarctica at one time was a land of swamps and forests. Heat and moisture must have kept the trees in the forests alive. Despite the hostile environment, both animals and plants can be found in the oceans and on land in polar areas.
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